Exploring the Relevance of Employee Productivity-Linked Firm Performance Measures: An Empirical Study in India

Nikhat Afshan; Diganta Chakrabarti; M. S. Balaji

doi:10.1080/15475778.2014.869462

Exploring the Relevance of Employee Productivity-Linked Firm Performance Measures: An Empirical Study in India

Nikhat Afshan, Diganta Chakrabarti, M. S. Balaji

Research output: Journal Publication › Article › peer-review

3 Citations (Scopus)

Abstract

The present study has been designed to examine the use of people-productivity-linked indices to measure firm performance. Revenue per employee (RPE) and profit per employee (PPE) were two selected indices used in this study to measure the organizational productivity across two industries. The results of the rank correlation of RPE and PPE with traditional financial indicators for eight years (2004-2005 to 2011-2012) showed significant associations. Implications of the results of this study in the present context highlighted the need for widespread application and acceptance of employee-linked productivity indices.

Original language	English
Pages (from-to)	24-37
Number of pages	14
Journal	Journal of Transnational Management
Volume	19
Issue number	1
DOIs	https://doi.org/10.1080/15475778.2014.869462
Publication status	Published - Jan 2014
Externally published	Yes

Keywords

IT/ITES industry
chemical industry
productivity
profit per employee
rank correlation
return on assets
revenue per employee

ASJC Scopus subject areas

Geography, Planning and Development
Development
Management, Monitoring, Policy and Law

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10.1080/15475778.2014.869462

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abstract = "The present study has been designed to examine the use of people-productivity-linked indices to measure firm performance. Revenue per employee (RPE) and profit per employee (PPE) were two selected indices used in this study to measure the organizational productivity across two industries. The results of the rank correlation of RPE and PPE with traditional financial indicators for eight years (2004-2005 to 2011-2012) showed significant associations. Implications of the results of this study in the present context highlighted the need for widespread application and acceptance of employee-linked productivity indices.",

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AB - The present study has been designed to examine the use of people-productivity-linked indices to measure firm performance. Revenue per employee (RPE) and profit per employee (PPE) were two selected indices used in this study to measure the organizational productivity across two industries. The results of the rank correlation of RPE and PPE with traditional financial indicators for eight years (2004-2005 to 2011-2012) showed significant associations. Implications of the results of this study in the present context highlighted the need for widespread application and acceptance of employee-linked productivity indices.

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KW - chemical industry

KW - productivity

KW - profit per employee

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Exploring the Relevance of Employee Productivity-Linked Firm Performance Measures: An Empirical Study in India

Abstract

Keywords

ASJC Scopus subject areas

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